In 1887 Henry Carter Adams produced a study demonstrating that the ownership of government bonds was heavily concentrated in the hands of a ‘bondholding class’ that lent to and, in Adams’s view, controlled the government like domi-nant shareholders control a corporation. The interests of this bondholding class clashed with the interests of the masses, whose…
Due to rising life expectancy and declining fertility, the world’s population isageing rapidly. Not only does the number of elderly relative to the number of working-age people increase, so does the proportion of the very old in thegeneral population of the aged. In consequence, government spending on pensions, health care and other services provided for…
The macroeconomic theory of public debt has become increasingly controversial in recent years. Debt_Neutrality_A_Brief_Rev… by Debt Free on Scribd
We work out the mechanism that makes public debt affect the allocation of resources in the long-run. To doso we analyze an AK growth model with elastic labor supply and a government sector. The government leviesa distortionary income tax and issues bonds to nance lump-sum transfers and non-distortionary publicspending. We show that the long-run growth…
